The Euro regained traction (following Tuesday’s bullish daily candle with long tail, which signaled that shallow consolidation is likely over) and extends recovery on Wednesday, to pressure last Friday’s post NFP high at 1.1383.
Weak dollar and risk appetite keep the single currency supported for final push towards 2020 high at 1.1494 (9 Mar).
Strong bullish momentum which rises for two weeks and multiple bull-crosses of daily MA’s underpin the advance.
Bulls need close above 1.1383 to confirm continuation and sideline scenario of extended consolidation which would be signaled on failure to clear Friday’s high. Near-term action is expected to maintain firm bullish bias as long as holding above broken Fibo barrier at 1.1292 (76.4% of 1.1494/1.0635).
Only break below Tuesday’s low (1.1240, reinforced by rising 10DMA) would sideline bulls and signal correction.
Res: 1.1383, 1.1400, 1.1457, 1.1494
Sup: 1.1331, 1.1292, 1.1268, 1.1240
